With inventory management software, the exact location of every single one of your products will be registered in realtime. Your employees will no longer waste time searching for products in your warehouse. Using an inventory management system to improve your stock management strategy Save some time Mismanagement of your inventory can lead to a huge loss of revenue and time for your business. Several large companies are unanimous, the use of an inventory management system is the best way to ensure good inventory control. Regardless of your restocking method, if you don’t manage your inventory efficiently, you’ll never attain good results. If you are not sure how much stock to order and when to make your next order, this method is best for you. This is a very practical method for a rarer or more expensive type of product. Restocking by order: This is when the quantity and date of the order are variable.This is a relevant method for products that are not consumed on a regular basis. Regardless of the date, the quantity of stocks to order is predefined and always remains the same. As soon as there is no more stock, an order must be placed. Command Point or Right-On-Time Method: With this method, it’s the date when the order must be made that varies.This is a favorable method when it comes to expensive and/or perishable products consumed regularly. Recompiling method: When the time comes to make an order, you must look at the remaining quantity of stock and order the necessary stock to reach the maximum storage.Ideal for a type of good that must be ordered regularly and constantly. Scheduled restocking: When a company orders a fixed quantity of inventory for a specific date.Here are some traditional methods of inventory restocking. Of course, there’s no ultimate solution, only perhaps the one that will be more adapted to your needs. To avoid falling into overstocking, sleeping stock inventory accumulation, or other issues that would lead to poor inventory management within your business, it’s important to choose the appropriate restocking methods. Good management of your minimum inventory allows you to significantly reduce your expenses, save your employees loads of time, and allows you to optimize the space in your warehouse. If you don’t pay enough attention to the management of your minimum inventory, overstocking of your products could occur. Supplier Lead Time: The order treatment and delivery times.Determine the quantity of stock with the same barcode that is used during a certain period.Here are three methods to determine your minimum stock value: You’ll therefore be able to make a new order in order to avoid going out of stock. With an inventory management system, you’ll be notified when some of the products in your inventory are about to sell out. Minimum stock is basically the restocking point. You will then be able to adapt your restocks, and better evaluate your expenses.
An inventory management software could be a solution to help you control and ensure proper stock rotation to determine which products are likely to become sleeping stock. There is no secret recipe to avoid the accumulation of sleeping stock, it’s necessary that you maintain your inventory in realtime.
How to avoid the accumulation of sleeping stock? The accumulation of sleeping stock in your warehouse can become expensive for your business because that type of product doesn’t generate income while taking loads of space that could otherwise be used. Sleeplinh stock is stock that isn’t consumed or that is rarely used and remains in the warehouse. This can cause a shortage of stock and therefore a big hit to the image and overall appreciation of the business. Understocking happens when there isn’t enough stock to meet demand. This can potentially generate a loss of profit and space.
Overstocking is when a business stocks an excessive quantity of product for the quantity used or consumed.
Inventories are defined as a set of assets owned by a business in order to be consumed, used, or sold on a given date.